NelsonUK

OK this is the scenario

I pay £1300 a year for Fully Comp Insurance and have a car valued at £5K and write it off. I am at fault and insurance company pay me the £5K. Now I am paying my premium by instalments to a premium credit type company which means that my insurance company have already been paid in full. My policy states that in the event of a total loss then the insurers have to be paid up whatever premium is outstanding. However as far as they are concerned they have received the total premium but I still owe over 6 months instalments circa £600 to the premium credit company. Now my understanding of this situation is that if I decide to go and buy another car(having recv'd insurance payout) I would need to reinsure it for a year with whatever NCB I had left ?? However a friend of mine has been advised that she can insure another car under the same policy - continue paying the instalments until the renewal ?? She can insure another car upto the same spec/ins group as what was insured originally at no extra cost !!?? (this is from her brokers and not her insurers btw) Surely this means that she could insure another car exactly the same on the original £1300 premium and then write that one off get another £5K and so on and so on ??

To me this is completely absurd - can anyone please advise me whether I am talking out of my **** or whether the advice my friend is getting is complete piff !! Anyone else had similar experiences ??

krazy

I suppose.. think i understand...
But, you're buying a years insurance cover, if u have a claim they fix/replace car and u continue under same insurance till u get your inflated premium next yr...

They'd probably send in the fraud investigators.... and/or wriggle out of claim if it happened 2 many times thou..

GM

When i passed the Chartered insurance Institute's "Property, Pecuniary and Liability Insurances" paper back in the mists of time it was always the case that if an insurer paid a total loss claim then the policy was cancelled. So I'd have thought that in your case you were right - you'd have to pay the outstanding instalments and take out a new policy for your new car. Could be your friend has some weird kind of protection written into the policy I guess. If in doubt, RTFP!!!!!!

NelsonUK

Thanks GM - I work in the insurance field and have done so for a few years now havent done the CII exams YET but this was my understanding. The problem is the advice is coming from the brokers who I have to admit do seem a little naive

simb 2

iTrader: (3)

I think your find this is common place with alot of insurers, you can insure another vehicle on this policy following a total loss until the origanal expiry date of said policy.

simb